Topic 2 (Chapter 14):
Traditional retail in the United States, the kind you find at the malls and urban department stores, is in trouble. In what promises to be the retail battle of the decade, Walmart and Amazon are going head-to-head for the retail consumer dollar. Walmart brings to the fray the largest physical retail presence in the United States, with over 5,200 stores. But for many years, it lacked a powerful online presence. Amazon brings to the fray the largest online retail presence in the United States, but until recently Amazon lacked a physical footprint in retail commerce. Walmart is moving towards an omnichannel approach that combines online and offline retail, while Amazon is emphasizing same-day delivery, local drop-off boxes, and may well introduce local physical stores in the future, especially with its purchase of Whole Foods in 2017. The videos for this video case provide further information on Walmart's strategy for developing a competitive online presence.
Watch the video case below and answer the following questions in a 1-2 page essay format.
Delivery is the new growth driver for Walmart and others: Expert
1. What are the challenges facing traditional "brick-and-mortar" retail business in America?
2. What competitive advantages does Walmart have against Amazon?
3. From the video above, are the stock analysts positive or negative about Walmart's long-term prospects? Why?